Source of Funds

[pcwest]

The SEC has their sights on "Source of Funds."

Even if the SEC looses the battle to make index annuities securities, they want to make it illegal for insurance agents to roll money out of securities and into fixed or index annuities.

Does anyone know which states have a Source of Funds rule? I thought Arkansas had a Source of funds rule in place.

Any info. would be helpful. I want to write an article on Source of Funds.


Thanks

 

[0b1kanobee]

Interesting. Where did you hear/read about this. Got an article you could post. Boy, they really want to get their hands on that money any way they can. What a bummer. If it isn't one thing, it is another and if it isn't another, it is one thing.

 

[Norwayguy]

I'm in Maine and am unaware of a rule lke that....Gee Mr SEC have you ever heard of suitability? How does a rule like that work most Registered Reps I know also maintain an Insurance license so does that mean once money is in a security it can't come out because if a rep with an insurance license moved it out that would be illegal and if the rep doesn't have an insurance license then they can't complete the process either?

 

[0b1kanobee]

I think your best bet is to call one of the annuity companies you do business with and see what they say. Next time I get on the phone I will ask who I would speak to about this but I have heard nothing about it so far. However, it would not surprise me if this were true. have you tried to Google it?
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I found information on it and apparently you are correct about Arkansas. Here is the article:

Cyber Insurance News - The State of the Annuity Market: Regulatory Struggles and Capital Issues Should Not Impede Sales of Fixed Annuities in 2010 | Spotlight

 

[Franz Kafka]

You can't give an investment advice without being registered. Telling someone to close an investment account is an investment advice. So ... don't tell them that.

 

[0b1kanobee]

You can't give an investment advice without being registered. Telling someone to close an investment account is an investment advice. So ... don't tell them that.

Did you read the article I posted? From what I gather it doesn't matter if you have duct tape on your mouth. The SEC wants their money.

 

[Franz Kafka]

Did you read the article I posted? From what I gather it doesn't matter if you have duct tape on your mouth. The SEC wants their money.

I guess what I meant to say was that I never had to transfer funds from securities to fixed annuities. I recommend a product and pick up a check if they want it.

 

[0b1kanobee]

Most everything I do when it comes to annuities is transferring from something like mutual funds into a fixed annuity. It is most of the annuity business I run across........

 

[Franz Kafka]

Most everything I do when it comes to annuities is transferring from something like mutual funds into a fixed annuity. It is most of the annuity business I run across........

Then you need to check with the laws of your state.

Cash game casinos are illegal in Japan but you can win "prizes". Then you go right outside of the casino and exchange them for cash. That's perfectly legal.

 

[pcwest]

From what I have found out, it looks like the SEC/government will get what they want.

I have a feeling marketing companies will be knocking on Broker Dealer doors now.